Global Times: The Fed causes world to experience 'economic earthquake'

According to Chinese publication The Global Times, the world will experience an "economic earthquake” due to the decision of the US Federal Reserve System to raise the key rate.

The Fed's decision was made in an attempt to reduce the effects of inflation in the United States. At the same time, however, the decision may have a negative impact on the global economy.

The author of the article, Sheng Wen, said that the American authorities made a reckless decision. According to him, the Federal Reserve does not think about economic situations and exchange rates in other countries, even if they are US allies.

"To prevent dollar-denominated assets from being drawn back to the US by the Fed's streak of aggressive rate hikes, other economies will be forced to raise their interest rates too, which is likely to cause a global recession, with hundreds of millions of people losing their jobs," the observer pointed out.